In an effort to encourage retail stock ownership and improveshare liquidity, the KN Energy board of directors announcedWednesday shareholders of record at the close of business Dec. 15will receive a three-for-two stock split and a 7.1% increase inquarterly dividends. The stock will be distributed and the increasewill be paid concurrently on Dec. 31.
The stock split will result in a 50% increase in the 45 millionKN Energy shares now outstanding. The dividend increase will raisethe price of shares from $0.28 to $0.30 per common share. After thestock split, the share price will be $0.20 per common share. Theboard also declared a dividend of $1.25 on Class A, $5 preferredshares of stock payable Jan. 4.
Larry Hall, CEO of KN Energy portrayed the move as a vote ofconfidence in the company’s growth potential. With the acquisitionof MidCon Corp., KN Energy’s asset base rose from $1.5 billion toover $9 billion. Sources within KN Energy say this strategy isstill in effect and the company is looking to expand through moreacquisitions and enlarging electric generation capabilities.
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